Random thoughts on BAMTech-Disney-Netflix

Eric Elia
Eric Elia
Aug 9, 2017 · 2 min read

Implications for online video platforms, aggregation vs. a la carte

The path to TV transformation has been clear for 10 plus years. This is not sudden and should be surprising to no one. One of the big unanswered questions is the role and value of aggregation. Viewers/cord-cutter-shavers and the media that cover them think they want a la carte programming. But value will go down and complexity/friction will go up. This happened in music. We now see subscription winning. Complete libraries are vital for music. TV and movies are different. Unclear how this will play out. All-you-can-eat aggregators vs. vertical aggregators vs. narrow-direct offerings vs. full a la carte. I don’t see consumers carrying 7 TV subscriptions.

5G and mobile “broadband” is going to lead to a westerosi style battle for the kingdoms between telecoms, including former “cable” companies who will find themselves competing with each other.

Disney owning its technology is unlikely to end well over time, but it will be a unique advantage for now. Predict this will be much more successful than Disney’s datacast -powered streaming service circa 2003. Other media companies will need to own their own platforms, or at least think they do. Likely some great opportunities to own/partner for media companies following Disney’s example.

BAMTech valuation (3.75B) is larger than the largest OVPs combined. Operating a service on behalf of another brand is different from selling the pickaxes and shovels. Frankly surprised the BAM was able to pull this off. Can’t recall of another/similar business model. Closest I can think of is CNet building and spinning off Vignette CMS back in the day.

Eric Elia

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Eric Elia

Longtime online video guy, from the postage stamp days. Previously Comcast, Brightcove, Cainkade and SoulCycle tech.